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Apple reportedly in talks to buy a ‘key part’ of Intel’s smartphone modem business

2019 June 11

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Following the settlement between Qualcomm and Apple, which saw the two companies coming to a long-term agreement for modems and other smartphone-related elements, Intel announced an exit from the smartphone modem market. And now Apple may buy a key element of that business.

According to a report on Tuesday from The Information, Apple is in talks with Intel to buy that company’s German modem unit, which is described as being “a key part” of Intel’s smartphone modem business. This particular move could potentially boost Apple’s own internal desires to create a custom smartphone modem, something the company has been rumored to be doing for quite some time.

The talks come as Intel considers selling its struggling modem business in pieces. Apple is focusing on one of the strongest pieces of the modem business. While Intel’s modem group is spread across the world, its foundation is in Germany, where the chip maker Infineon, whose modem operations Intel bought in 2011 for $1.4 billion, is based. Any deal with Intel for the business would likely send hundreds of modem engineers to Apple.

Apple’s custom smartphone modem is more than likely still years away, seeing as Apple’s and Qualcomm’s agreement, which covers 5G chips, is set for at least a handful of years. But this latest report doesn’t suggest anything otherwise. The talks with Intel may take some time to finalize after all, and that’s if the talks actually lead to Apple buying the key part of Intel’s smartphone modem business.

Indeed, this report states that while Apple and Intel have been in discussions since last year (with Intel aiming to sell off its smartphone modem business in pieces), nothing is set in stone by any means, and the talks could fall through at any time.